Democratic leaders Wednesday announced their plan to balance California’s budget and keep health and welfare programs open, but Gov. Arnold Schwarzenegger and other Republicans say the proposal doesn’t cut enough spending and includes tax increases that will not pass.

The budget proposal, compiled by the Democratic-controlled budget conference committee, cuts about $13 billion in spending and raises about $2 billion by revoking corporate tax breaks and raising taxes on cigarettes, oil drilling and vehicle registration. Assembly Speaker Karen Bass, D-Los Angeles, said the package will come to a vote next week.

“We have a balanced budget, but there is shared pain all around,” she said. “We ask that shared pain be shared by oil companies and tobacco products.”

The Democratic proposal includes $23.2 billion in budget solutions – spending cuts, tax revenues and what Republicans have called accounting gimmicks – that will help close the state’s estimated $24.3 billion budget gap. The plan provides funding for state welfare and health care programs that Schwarzenegger recommended be closed.

Assemblywoman Wilmer Amina Carter, R-Rialto, said she and other Democrats would rather increase taxes than eliminate those programs.

“We could not make $24 billion in cuts without destroying our safety net,” Carter said. “That is why we have a combination of cuts, revenues and other solutions.”

The Democrats’ proposal includes a $3.8 billion reserve, which Senate Pro Tem Darrell Steinberg, D-Sacramento, said is large enough to cover spending even if proposals to increase taxes fails.

It might have to be, as Republicans, including Schwarzenegger, say they will not approve tax increases. Tax hikes would require a two-thirds vote of the legislature, meaning a handful of Republicans in each chamber would have to vote for them.

The taxes include a 9.9 percent tax on oil extracted in California, an additional $1.50 per pack tax on cigarettes and a $15 addition to the state’s vehicle licensing fee. Money from that fee would fund state parks.

Assemblyman Paul Cook, R-Yucaipa, said he would “look at the whole package” but cannot support the vehicle tax to fund state parks even though he wants to keep parks open.

“I’m not going to do it where everybody gets pinged,” he said, adding that he would support raising entrance fees at parks. “Some people never use the parks, and they’re saying, `How come I have to do this?”‘

He and state Sen. Bob Dutton, R-Rancho Cucamonga, said the oil severance tax could cost California jobs if oil companies pull out. Cook said that tax could also drive up gas prices.

Senate Republican Caucus Chairman George Runner, who represents the Victor Valley and Wrightwood, said Republicans will reject the tax increases and that Democrats are stalling by calling for a vote.

“We’re going to spend the next week going through the dance when everybody knows how it’s going to end,” said Runner, R-Lancaster.

Schwarzenegger said he would veto any tax increases, though the governor himself proposed one of the tax hikes – the 9.9 percent oil severance tax – late last year.

That was a different time, Schwarzenegger spokesman Aaron McLear said, before the legislature voted in February to increases taxes by about $12 billion.

“The governor believes we have increased taxes as much as we ought to,” McLear said.

The oil severance tax, along with the cigarette tax and rollbacks in corporate tax breaks were all pushed by public employees unions as alternatives to cutting state workers’ pay – an element included in Schwarzenegger’s proposed budget that Democratic legislators left out of their plan.

But workers could still get smaller paychecks, Schwarzenegger’s office said.

“We need to cut back on state government,” McLear said Wednesday. “Part of the cutbacks will be to the state work force.”

Most state employees have already been forced to take two unpaid days off per month, amounting to a 9.2 percent pay cut. Schwarzenegger ordered those furloughs himself – the legislature’s approval was not required – and could do so again if he’s not happy with amount of cuts in the final budget deal.

“The governor maintains his ability to implement furloughs and layoffs,” McLear said. “If he needs to do so to balance our budget, he will.”

The plan does not include borrowing $2 billion from local governments – something Schwarzenegger had proposed – but it does call for taking $350 million from local redevelopment agencies, Dutton said.

“That really hurts,” Dutton said. “A lot of the infrastructure and everything – the parks and things people like to brag about, are possible because of redevelopment agencies.”